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Bitcoin boom forces Kazakhstan to act: Black miners threaten power supply

Kazakhstan’s coal-fired power plants heavily burdened by cryptomining. (Photo: DuxX / Shutterstock)

Extremely low electricity prices and the geographical proximity to China have made Kazakhstan number 2 in the world within three months Made crypto mining. This poses increasing problems for the country with its 19 million inhabitants.

Bitcoin mining has a significant impact on the Kazakh network

Because the Kazakh government has noticed that energy consumption in the country has increased rapidly. It has long since ceased to be covered by the country’s outdated coal-fired power plants. In order not to let the energy imports from outside get out of hand, the first rationing measures are taking effect in the country.

The country’s energy ministry sees an urgent need for action and wants to act Take care of the miner problem as soon as possible. Because according to official figures, crypto miners consume up to 1.2 gigawatts of electricity and thus around eight percent of the total electricity output.

Black miners significantly more energy-hungry

The problem is exacerbated by the fact that unregistered, so to speak “black” miners would noticeably consume about twice as much electricity as those who officially registered their crypto company.

First of all, Energy Minister Murat Zhurebekov wants to issue an ordinance which, on the one hand, is intended to force crypto miners to properly register their company. On the other hand, it should form the legal basis to be able to switch off unregistered miners’ electricity. This regulation should be implemented before the end of the year, promises Zhurebekow: “Because this matter can no longer be postponed”.

Shutting down unregistered miners causes problems

The main difficulty in shutting down unregistered miners is first of all to have to locate. Findings so far show that they often operate from basements and abandoned factory buildings. Kazakhstan wants to use aerial reconnaissance to search for heat signatures.

Miners who are registered should continue to operate in the country, but will also be able to a kind of energy tax, which is to be levied from the beginning of 2022 in the order of 0.0023 US dollars per kilowatt hour.

That is why Kazakhstan does not simply prohibit mining

Of course Kazakhstan would have one too simpler alternative. As the data from GlobalPetrolPrices show, the average kilowatt hour in Kazakhstan costs only $ 0.054, while the average in the rest of the world is $ 0.124 – Germany at the top of the price range with 0.371.

A price increase should clearly deter Kazakh miners. But that would be just as little in the interests of the government. After all, Kazakhstan’s National Association for Data Centers and Blockchain (NABDC) recently estimated that crypto mining could generate $ 1.5 billion in revenue over the next five years. So it makes sense to exercise a certain instinct when dealing with crypto miners.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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